DeFi gets a ‘SEAL’ team as white hat hackers, auditors join forces
While ill-gotten gains from exploits are significantly down from the same period compared to last year, hacks continue to pose a clear danger for budding DeFi ecosystems
Camp1994/Shutterstock, modified by Blockworks
One week since Curve Finance’s $70 million exploit and almost three-quarters of the stolen funds have been returned. But the crypto community remains on high alert.
In response, Sam (@samczsun), research partner and head of security at Paradigm, has announced a collaborative initiative with white hat hackers, auditors and security leaders.
Together they aim to solve disclosure in cybersecurity, particularly as a means for those seeking to quickly avert potentially hundreds of millions of dollars in DeFi hacks and exploits.
“The hardest part of responsible disclosure is finding the right person to talk to,” Sam tweeted Tuesday, sharing insights into the effort.
The solution: SEAL 911, a Telegram bot that provides a streamlined contact platform with vetted security professionals. The hope is that the channel will rapidly gain widespread attention and support, not only from the broader community but also from security experts and organizations.
Members include representatives from Wallet Guard, Origin Protocol, ChainSecurity, MetaMask, and more, all committing to lend their expertise during emergencies.
The initiative aligns with recent hacks that have rocked the DeFi sector. Curve Finance’s exploit, caused by a reentrancy lock malfunction, resulted in CRV’s price dropping from $0.73 to $0.49 in 48 hours.
Euler Finance’s $200 million loss in March, and subsequent recovery, has contributed to more than $800 million in industry losses this year, a stark improvement over 2022.
Between January 2022 and November 2022, hackers stole $4.3 billion worth of crypto, marking a 37% increase compared to the same period in 2021, Blockworks previously reported.
Get the news in your inbox. Explore Blockworks newsletters:
- The Breakdown: Decoding crypto and the markets. Daily.
- Empire: Crypto news and analysis to start your day.
- Forward Guidance: The intersection of crypto, macro and policy.
- 0xResearch: Alpha directly in your inbox.
- Lightspeed: All things Solana.
- The Drop: Apps, games, memes and more.
- Supply Shock: Bitcoin, bitcoin, bitcoin.
